Salient to Investors: Paul B. Farrell writes: 2014 is a virtually guaranteed disaster just waiting to ignite. Bubbles are everywhere. Kit Juckes at Societe Generale says all three worldwide financial bubbles in the last three decades – The Asian Bubble in the early ‘90s, Dot-com Bubble of the late ‘90s
READ MORE... →Salient to Investors: Jeffrey Lacker at FRB of Richmond said Financial markets will remain volatile as policy makers debate tapering, part of the process of incorporating new information into financial asset prices. Reaction to Bernanke’s comments is evidence that they had built-in expectations of more asset purchases than I think the
READ MORE... →Salient to Investors: Bank of America Merrill Lynch data show US bonds fell for a third quarter, the longest losing streak since 1999. goodwill there Larry Milstein at R.W. Pressprich said the rate move higher is all about Fed action and is overdone given the economy, but if the Fed is ready
READ MORE... →Salient to Investors: Alexander Friedman at UBS says: What Fed has done is not unexpected and the market reacted because it was ahead of itself. All the Fed was saying was that the US is doing OK, that the data is trending as it should, and that it has confidence
READ MORE... →Salient to Investors: Robert Pavlik at Banyan Partners said the message various Fed governors are trying to send is no clearer than what was talked about by Bernanke last week, and sees no reason to buy on the pullback, and since there was not much follow through at least on the
READ MORE... →Salient to Investors: Gold traders are divided on the outlook for prices, as gold is poised for the biggest quarterly drop in at least 9 decades after investors cut bullion holdings to a 3-year low. Thorsten Polleit at Degussa Goldhandel said we are already at distressed prices really oversold, but a
READ MORE... →Salient to Investors: Makoto Suzuki at Okasan Securities said Treasury yields have risen too much, and the stock market appears to be too optimistic about the US economic outlook. The median estimate of the Thomson Reuters/University of Michigan index of consumer sentiment is 83 for June versus the 6-year high of 84.5
READ MORE... →Salient to Investors: A. Gary Shilling at A. Gary Shilling & Co. writes: Short stocks and commodities, go long the dollar and Treasuries – if stocks continue to decline, the safety of Treasuries and investment-grade bonds will outweigh concerns about the end of QE. World economies are growing slowly at
READ MORE... →Salient to Investors: Jim Rogers says we are getting to that point where either central banks are going to stop the money printing, or the market will force them to stop it, or a healthy convergence of both. Rogers says if it is not ending now, it will end sometime
READ MORE... →Salient to Investors: Henry Paulson at the Paulson Institute said: Phasing out QE will cause market volatility and pain because there is never a neat, elegant solution that is totally painless or without a cost to a big, ugly problem – some market participants are addicted to these abnormally low interest rates. The US
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